Congress Wants Automatic Wage Deductions To Pay Down The Debt

Folks… you just can’t make this stuff up.

On July 6, at least a dozen busybody Congressmen sponsored the introduction of H.R. 2411, the Reduce America’s Debt Now Act of 2011. They always come up with fantastic names for these pieces of legislation… and rest assured, the better/more patriotic the name, the more ominous the bill. This one follows the pattern.

H.R. 2411 states that every worker in America should be able to voluntarily have a portion of his or her wages automatically withheld and sent directly to the Treasury Department for the purposes of paying down the Federal debt.

“Every employer making payment of wages shall deduct and withhold upon such wages any amounts so elected, and shall pay such amounts over to the Secretary of the Treasury…”

That’s right. Uncle Sam is so broke that he wants to give all the good little Americans out there the opportunity to contribute an even greater portion of their paychecks to finance government largess.

Desperate? Hmmm… Don’t worry, it gets better.

Obviously, if an employee feels so compelled and should elect to have a portion of his or her paycheck withheld, the onus of responsibility is now on the employer to make it happen. The employer has to do all the paperwork, withhold the money, send the payment to the Treasury, maintain the account records and probably submit to all kinds of new filing requirements.

You can imagine that, if passed, the bill will result in a host of new Internal Revenue Service regulations, complete with a battery of penalties for employers who don’t fill out the paperwork properly or submit filings on time or who make some administrative mistake.

Think about it: If a small business owner has one single employee who is dumb enough to think it’s his patriotic duty to pay down the debt and decides to contribute $1 per month, that owner will have the responsibility for all kinds of new forms and filings, plus submit to new “debt reduction audits.”

But don’t worry, it gets even better.

So let’s say there are millions of sheep out there who elect to donate a portion of their toil and sweat so that the Chinese and big financial institutions don’t have to worry about an American default. How does Congress plan on rewarding its most patriotic citizens? By sticking it to them on their taxes, of course.

H.R. 2411 stipulates that any contribution made to the Treasury in order to pay down the Federal debt is not tax deductible.

“The (Treasury) Secretary shall include. . .  a reasonably conspicuous statement that any amounts deducted and withheld from wages. . .  are not deductible as charitable contributions for Federal income tax purposes.”

Imagine this scenario: You make $100,000 per year. In a fit of complete insanity, you decide that you want to withhold your entire annual salary to pay down the debt. Hey, you can always move in with Mom for the next year, right?

Well, guess what? Uncle Sam will gladly take your money… and then still expect you to pay taxes on the $100,000 you earned, so you would have to come out of pocket with an additional $40,000 or so.

Don’t worry, though. The Social Security and Medicare wages are reduced by the amount that you withhold, making you liable for only State and Federal taxes. Seems like a good deal, eh, comrades?

There are so many things utterly wrong with his piece of legislation, it’s hard to know where to begin other than by saying that such intellectual and philosophical perversion is only capable of springing from unprincipled sociopaths whose sole capability is the destruction of value.

There’s a great quote from Atlas Shrugged that comes to mind which sums this all up:

(W)hen you see that in order to produce, you need to obtain permission from men who produce nothing; when you see that money is flowing to those who deal not in goods, but in favors; when you see that men get rich more easily by graft than by work, and your laws no longer protect you against them, but protect them against you. . . you may know that your society is doomed.

According to legend, a frog, when put into a pot of water and slowly brought to a boil, doesn’t realize it’s in danger until it’s too late. I think the boiling frog just got a little hotter. Have you hit your breaking point yet?

If you have, I urge you to watch this free, 3-minute video. It can help you to survive and thrive in the age of turmoil.

Expatriation: A Path To Personal Liberty

In 43 BC, warring consuls Antony, Lepidus and Octavian were duking it out with each other over control of Rome following Julius Caesar’s assassination the prior March.

Each had legions at his disposal, and Rome’s terrified Senate sat on its hands waiting for the outcome.

Ultimately, the three men chose to unite in what became known as the Second Triumvirate, representing the final nail in the coffin in Rome’s transition from republic to malignant autocracy.

When the arrangement expired after 10 years, Octavian vanquished his partners and became generally regarded as Rome’s first emperor.

Things only got worse from there. Octavian was followed by Tiberius, a paranoid deviant with a lust for executions. His successor Caligula’s moral depravity was so infamous it inspired the 1979 porno film of the same name.

Caligula was followed by Claudius, a stammering, slobbering, confused man as described by his contemporaries. Then there was Nero, who not only managed to burn down his city but was also the first emperor to debase the value of Rome’s currency.

You know the rest of the story — Romans watched their leadership and country get worse and worse.

All along the way, there were two types of people:

  • The first group said, “This has GOT to be the bottom, it can only get better from here.” Their patriotism was rewarded with reduced civil liberties, higher taxes, insane despots and a polluted currency.
  • The other group consisted of people who looked at the warning signs and thought, “I have to get out of here.” They followed their instincts and moved on to other places where they could build their lives, survive and prosper.

Some consider the latter option, expatriation, to be “running away,” a cowardly and weak idea. This is flawed logic.

While the notion of staying and “fighting” is noble in principle, bear in mind that there is no real enemy or force to fight. The government is a faceless bureaucracy that is impossible to attack. People who try only discredit their argument because they become marginalized as fringe lunatics.

Remember John Stack? He’s the guy who flew his airplane into the IRS building in Austin, Texas last year because he had a serious philosophical disagreement over tax issues. While his ideas may have had intellectual merit, they were immediately dismissed due to his murderous tactics.

Violence is rarely the answer, and it often has the opposite effect as intended, frequently serving to bolster support for the government instead of raising awareness of its shortcomings.

It’s an uphill battle at best to raise awareness of the real issues. People are programmed by the education system to subordinate themselves to a good and just government. Nobody looks behind the curtain, which is why the country’s core values today emphasize things like fake security, welfare and ignorance over real freedom and independence.

When it appears more and more each day that those core values diverge from your own, it’s time to reconsider what we’re getting out of our citizenship and look at other possibilities.

Nobody is born with a mandatory obligation to a piece of dirt. Our fundamental obligation is to ourselves, our families and the people that we choose to let into our circles… not to mob-installed bureaucrats.

Moving away, i.e., making a calculated decision to seek better opportunities elsewhere, is not the same as “running away.” It is the most effective way to change your home country, and it is anything but cowardly.

One of the most difficult things you could ever do is pack up your life, leave everything familiar and head to a new world full of uncertainty.

Just about everyone reading this had ancestors who did just that. Those people were not cowards; they were pioneers. They traded tyranny for opportunity and headed to a land full of bright prospects. There, they could carve out lives in which they were accountable for their own successes and failures.

Granted, we have it easier today than our pioneering ancestors… but leaving behind the familiarity of home is still a difficult concept for most people to commit.

It’s like staying in a bad marriage or dead-end job… people do it because their paralyzing fear of the unknown is often greater than the routine misery to which they have already grown accustomed.

Taking action requires a catalyst, and that’s what we’re experiencing today — perhaps a father who watches a government agent fondle his child, or an entrepreneur whose assets are wrongfully frozen, or a student who realizes Social Security will no longer exist when she hits retirement age, etc.

One by one, people will wake up and consider their options. “Stay and fight” is just a bombastic rallying cry of the institutionalized, not a real option. The fact is, there is no enemy, there is no fight… there is only gradual erosion of freedom and opportunity.

Unable to change what we cannot control, productive people will eventually reach a breaking point and leave. The stay-and-fight crowd who remain will congratulate themselves on their patriotism, chastise the “cowards” who have left and resolve to go down with the mob-mentality, Mafia-controlled sinking ship.

Here’s the bottom line: Your country is controlled by a very small group of people, and you’re not one of them. You cannot control the machine; you can control only where and how to invest your time.

This beast feeds on indebting and taxing you… and the best solution is to starve the beast by leaving.

Fortunately, there are a lot of options around the world for the open-minded. Stop listening to what Sean Hannity tells you and see for yourself: The world is full of opportunity. I have traveled to about 100 countries and done business in dozens. Here are some of my favorites:

  • Chile: This is the new America. The country boasts a strong, independent and civilized economy. You will think you’re in Europe given how modern it is.
  • Singapore: There’s too much to say here… Do you need a job? Singaporeans are hiring. Do you need capital? Singaporeans are investing. Do you hate taxes? So do Singaporeans. Singapore is ideal for families, and obtaining residency (and citizenship) is simple.
  • Estonia: With its flat-tax structure, streamlined government and brilliant workforce, Estonia provides ample opportunity for entrepreneurs, particularly those looking for entry into Europe’s harmonized customs union.

I could go on — Brazil, Indonesia, Cayman Islands, Malaysia, Paraguay, Sri Lanka, Uruguay, Tanzania, China, Bermuda, etc. — but you get the idea.

In case you are geographically constrained, you can still take steps to increase your freedom. Start by moving some money to an overseas bank account, and store gold in an offshore vault — this safeguards your wealth from government bureaucrats who could otherwise freeze or confiscate your accounts on a whim.

Also consider buying some land overseas, even if it’s just a small piece. This is a great way to move money, and it gives you a starting point if you ever need a place to go.

Remember, these options are not exclusive to the wealthy. Anyone who is willing to reject institutional programming can find opportunity overseas or start protecting what they have at home. It takes an open mind, creativity, readiness to learn new skills and the will to act.

–By Simon Black,